On or before February 20, 2007, BNP may elect to either shoot an additional 5 kilometers of 2-D seismic data or drill an earning well.
Drilling operations are to commence within 90 days of electing to drill.
Upon drilling, casing, completing, capping or abandoning the earning well, BNP shall earn in a pre-selected earning block comprising 1,920 acres of the Farmout Lands to the base of the deepest formation fully penetrated 100% in the drilling spacing unit subject to a gross overriding royalty convertible by the private company to a 40% working interest at payout. In the balance of the pre-selected earning block BNP will earn 60% to the base of the deepest formation fully penetrated.
BNP shall have the option to drill up to 2 more wells to earn in the remainder of the Farmout Lands on the same terms.
"We now have approximately 10,000 gross acres under option in an under-explored area of Southwest Saskatchewan. We now have a critical mass with which we can aggressively explore," says Gregory Bilcox, President & CEO.
In addition, the Company is pleased to have acquired an additional 460 acres under lease in Southeast Saskatchewan. "We are steadily building up our position in this area," says Bilcox.
BNP is actively engaged in the exploration for, the development and production of, natural gas and oil reserves. BNP's business strategy is to build sustainable and profitable per share growth through selective acquisitions and internally generated exploration and development drilling.
BNP's areas of operational focus are in the Peace River Arch area of Alberta, the Central Alberta area and the Southeast and Southwest areas of Saskatchewan.
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